When it comes to any type of loan or finance the first thing most borrowers want to know is ‘what interest rate will I get?’ Like many other lenders, Jade Equipment Finance clearly displays the interest rates we can achieve across our finance portfolio. It’s quick and easy for you to see what cheap interest rates we can achieve for all the different equipment finance facilities that we offer. You can even use our calculators to input those rates to generate rough repayment estimates to plan your finance. All well and good but you could be thinking, with all the disclaimers, which we must include, am I going to be offered THAT rate or something else?
Many ads for equipment may show a ‘from’ interest rate or repayment if it is for a manufacturer or dealer, while many display an asterisk to indicate terms and conditions etc. This is required by us as lenders but we do see how it can be dilemma for borrowers. To clear your mind and ease your dilemma, we’re running through an explainer on interest rates across the equipment finance market so you have a better idea of what interest rate you can get and how you can get the cheapest interest rate.
Market Interest Rates
Interest rates are different for different finance and loan products and categories of purchases and assets. Rates also vary from one lender to another in some categories. Individual banks and lenders will set their rate for a sector or loan category based on their confidence in the industry or sector, their activity in loaning to that sector and based on the overall financial environment.
To get the cheapest interest rate for equipment finance, it can be smart to source a lender that specialises in that type of finance. Key point as to why Jade Equipment Finance can offer cheaper interest rates. We do specialise in the sector and we are accredited with non-bank lenders that also specialise in equipment finance. Together, we have the knowledge and understanding that is a significant contributing factor to our ability to offer lower interest rates than say a bank or other lender that specialises in another area.
The RBA sets the official cash rate which sets the price that lenders pay to acquire their funds and then all that flows through to the rates they set on their loans. Lenders price their loans according to their costs and other factors.
So key take-out is to select a lender that specialises in equipment finance in order to get cheaper interest rates.
Rates across Finance Products
Next let’s look at the rates for the different finance facilities available for equipment finance. We’re talking Leasing, CHP, Chattel Mortgage and Rent-to-Own. These have varying formats and structures and attract different interest rates. We’ve made that clear to see with our interest rate comparison chart where we list all our loan products and the current interest rates we are achieving for each one. You’ll notice that CHP and Chattel Mortgage are similar or the same while Leasing and Rent-to-Own are higher and different.
It may seem like the obvious choice to just go with the finance product that offers the cheapest interest rate. After all, the interest rate determines the repayments and the overall cost of the loan. But each finance product has a set of benefits which are realised by different types of businesses. The benefits that your particular business may derive from a higher interest rate product may be more significant than the interest rate. And some finance types may just not suit your business. That’s a conversation for you to have with your accountant.
The interest rates we display are currently achievable for many applicant with a good credit report and for purchasing new equipment. Some used equipment may attract a different rate. When you engage Jade Equipment Finance to handle your finance deal, your consultant will be doggedly working towards getting you the cheap interest rates we have on offer.
Instead of offering a higher rate, our lenders may offer you a finance deal at those rates but with conditions or stricter criteria. This is particularly relevant for those seeking ABN-only, low docs and no doc equipment finance.
Issues around the equipment you’re buying can also impact the loan offer.
What interest rate will you get?
Now to the burning question, what rate will you get? In a general forum such as this and with each equipment finance application considered individually, clearly we can’t provide overreaching quotes. But we can state categorically and definitively, that we will be working towards delivering you the cheapest interest rate on your equipment finance deal.
For your planning, use the rates we are currently displaying or just call us for a quick quote and then you will definitely know what rate you’ll be offered. There’s no obligation attached to requesting a quote and we won’t waste your time or keep you waiting. We provide a quick quote service so you can source the information you need quickly and easily to get on with securing your equipment.
To discuss your equipment finance requirements, contact Jade Equipment Finance on 1300 000 003
DISCLAIMER: THE INFORMATION PRESENTED IN THIS ARTICLE IS NOT INTENDED AS THE SOLE BASIS FOR INDIVIDUALS TO MAKE FINANCIAL DECISIONS. THOSE THAT REQUIRE ADVICE OR GUIDANCE IN REGARD TO THEIR FINANCIAL DECISIONS SHOULD CONSULT WITH AN ACCOUNTANT OR FINANCIAL ADVISOR. THE INFORMATION AS DETAILED IS BASED ON DATA, SPECS AND REFERENCES AS SOURCED FROM A RANGE OF SOURCES AND LIABILITY IS NOT ACCEPTED FOR MISINTERPRETATIONS, MISREPRESENTATIONS OR ANY ERRORS IN THE CONTENT. THIS ARTICLE IS FOR GENERAL INFORMATIVE PURPOSES ONLY.